Source: Finance Self-Media
Original Title: Today, Zhang Lei of Hillhouse Capital Spoke Out: The Carbonstop We Invested in Has Formed Possibly the World's Largest Carbon Emission Factor Database, and ESG Has Been Integrated into the Entire Life Cycle Management of Hillhouse Investments
Source: Smart Investor
"The Carbonstop we invested in uses technological innovation to provide carbon neutrality solutions. A core feature of theirs is relying on technology to help businesses manage and reduce carbon emissions. They have accumulated over 100,000 emission data points from more than 200 countries and regions around the world, forming possibly the largest carbon emission factor database in China and globally, becoming a fundamental infrastructure for scientifically guiding various industries in carbon emission calculations. For example, we invested in an industrial internet company, Quanying Technology, which developed a complete set of intelligent thermal power cloud systems. By using digital twin technology, they achieve intelligence in the thermal power industry, significantly improving the efficiency of energy usage."
"For Hillhouse, innovation and ESG are guidelines for our investment behavior, and they have been integrated into our entire investment life cycle management, from due diligence, investment decision-making, post-investment empowerment, project tracking, to final exit."
"For companies, practicing the concept of ESG is a historic opportunity to take proactive actions and reshape core competitiveness, laying the foundation for long-term sustainable development."
"Hillhouse also works with many partners to explore a Deep Value Creation (DVC) model over the long term. Under the premise of enterprise leadership, Hillhouse dispatches professional teams specializing in digitalization and lean management to deeply engage with frontline operations of enterprises, helping to stimulate internal innovation vitality and rebuild dynamic moats."
"In some large manufacturing enterprises, through lean improvement, we can not only adjust production plans and inventory levels in a timely manner, enhancing supply chain efficiency, but also reduce material waste and improve energy utilization efficiency, significantly promoting carbon emission reductions... Moreover, we believe that continuous technological innovation is the ultimate solution to environmental, developmental, and governance issues."
The above are the latest insightful views shared today (August 26th) by Zhang Lei, founder of Hillhouse Capital, at the "ESG Global Leaders Summit" initiated by Sina Finance's ESG Channel and jointly organized by CITIC Publishing Group.
Zhang Lei stated that ESG has been integrated into the entire life cycle management of Hillhouse investments. He introduced how Hillhouse comprehensively participates in the development of enterprises and helps them rebuild their moats, combining several specific Hillhouse investment cases.
Smart Investor compiled Zhang Lei's full speech and shares it with everyone.
ESG Gradually Becomes a Consensus Among Entrepreneurs
Respected guests, dear friends, I am very happy to exchange ideas with everyone at the ESG Global Leaders Summit.
Today, the threat of the COVID-19 pandemic has not yet dissipated, and there remains significant uncertainty in the external world. However, whether as entrepreneurs or investors, we are ultimately optimists.
In the face of uncertainty, we need to focus on the present, confront challenges, continue to innovate, hone our internal capabilities, and create real, sustained value for society.
I am delighted to see that after navigating through cycles and responding to unprecedented uncertainties, more and more entrepreneurs are paying greater attention to long-term development, environmental changes, and social responsibility. ESG is gradually becoming a consensus among entrepreneurs.
ESG Has Been Integrated into the Entire Life Cycle Management of Hillhouse Investments
For Hillhouse, innovation and ESG are guidelines for our investment behavior, and they have been integrated into our entire investment life cycle management, from due diligence, investment decision-making, post-investment empowerment, project tracking, to final exit.
On one hand, we integrate ESG into our own business management based on our unique characteristics. We were among the first in the industry to conduct our own carbon footprint investigation, starting with ourselves, accelerating the low-carbonization of our operations, and achieving our own carbon neutrality.
We are committed to gender balance in job opportunities and career development. Today, more than 50% of Hillhouse employees are women, and female executives account for over 35%.
We continue to increase our investment in education, science, poverty alleviation, and other charitable causes and encourage and advocate for our employees to actively participate in volunteer services and charitable activities, contributing positive energy to society through our actions.
ESG Is a Historical Opportunity for Enterprises to Reshape Core Competitiveness
On the other hand, for enterprises, practicing the concept of ESG is a historic opportunity to take proactive actions and reshape core competitiveness, laying the foundation for long-term sustainable development.
We hope to achieve a win-win situation in investment value, industrial value, employee value, and social value together with most enterprises.
At the beginning of this year, we issued the industry's first 'Carbon Neutrality Initiative Letter' to hundreds of our enterprise partners, hoping that the enterprises supported by Hillhouse would embrace change, take the lead in action, and begin to advance their own carbon neutrality plans. By working together with suppliers, customers, partners, and other stakeholders, we aim to accelerate the low-carbon transition in operational processes.
We have also established a special green fund and made full use of our research capabilities to continuously release professional research results on carbon neutrality and carbon pricing through joint and independent research.
We hope that by continuously outputting high-quality research insights, we can provide certain references and guidance for policymakers, industry players, and investment institutions in addressing the carbon neutrality transition.
It can be said that in promoting green development and practicing ESG theory, we are always on the move.
Hillhouse Helps Enterprises Rebuild Dynamic Moats Through Technological Innovation
In addition, Hillhouse works with numerous partners to explore a Deep Value Creation (DVC) model over the long term, known as DVC.
Under the premise of enterprise leadership, Hillhouse dispatches specialized teams focusing on digitalization and lean management to deeply engage with frontline operations of enterprises, helping to stimulate internal innovation vitality and rebuild dynamic moats.
For instance, in some large manufacturing enterprises, through lean improvement, we can not only adjust production plans and inventory levels promptly, enhancing supply chain efficiency, but also reduce material waste and improve energy utilization efficiency, significantly promoting carbon emission reductions.
More importantly, through technological innovation, we collaborate with enterprises to develop and create efficient technological tools, equipping frontline employees with the latest technological achievements. This not only helps them to use and master new technologies but also greatly improves their working environment, significantly enhancing their income and benefits.
This practice of deeply creating value for enterprises and empowering frontline employees is also a necessary part of practicing the ESG concept.
Technological Innovation Is the Ultimate Solution to Environmental Governance, Hillhouse Carbonstop, Quanying Technology
In addition, we believe that continuous technological innovation is the ultimate solution to environmental, developmental, and governance issues.
Therefore, Hillhouse has always placed great emphasis on the latest developments in artificial intelligence and new energy technologies, supporting enterprises in using cutting-edge technologies to promote innovative practices in green and low-carbon areas.
For example, the Carbonstop we invested in uses technological innovation to provide carbon neutrality solutions. A core feature of theirs is relying on technology to help businesses manage and reduce carbon emissions. They have accumulated over 100,000 emission data points from more than 200 countries and regions around the world, forming possibly the largest carbon emission factor database in China and globally, becoming a fundamental infrastructure for scientifically guiding various industries in carbon emission calculations. Another example is Quanying Technology, an industrial internet company we invested in, which has developed a comprehensive intelligent thermal power cloud system. By using digital twin technology, they achieve intelligence in the thermal power industry, significantly improving the efficiency of energy usage. The future painted by technological innovation is always appealing, while the ESG concept charts a more beautiful direction for tomorrow. We hope to work with more partners to support and improve key technologies for environmental protection and sustainable development through sustained efforts.
Do good, do well, making the world a better place, thank you all!
